Enhanced Infrastructure Financing District Legislation Brings Back Tax Increment Financing to California
“Tax increment financing is back in California. Tax increment makes its comeback through the passage of Senate Bill 628 (Beall), legislation authorizing the creation of Enhanced Infrastructure Financing Districts (EIFDs), which was signed into law by Governor Brown on September 29. The new legislation provides local governments an intriguing new tool to assist in the economic development of their communities, although it is not expected to generate close to the level of tax increment revenues that redevelopment did during its heyday.
EIFDs are empowered to provide financing for a broad range of infrastructure work, including traditional public works such as roads and highways, bridges, parking facilities, transit stations, sewage and water facilities, flood control and drainage projects, solid waste disposal, parks, libraries, and child care facilities. EIFDs may also finance other items including brownfield restoration and environmental mitigation, military base reuse projects, affordable housing, private industrial buildings, transit oriented development projects, and projects carrying out sustainable communities strategies.”
Baranoff, Constantine and Jonathan Cristy. JD Supra Business Advisor 5 November 2014.